The future of aluminum has seen a strong increase in the price during the last week. On Wednesday, it closed to ₹ 243.95/kg.
The recently ascending has led to the rupture of the contract of a key resistance to ₹ 238. Keep in mind that the future of aluminum was oscillating in the range of ₹ 230-238 since the beginning of April until last week.
Now that the contract left the barrier to ₹ 238, the perspective has become optimistic. After reaching a maximum of ₹ 245.25 on Wednesday, the price has been moderated at the current level of ₹ 240.
We hope that aluminum futures will resume the current level rally and touch ₹ 248 and ₹ 256 in the short term.
On the other hand, if the contract slides below ₹ 238, which is now a support, it can result in the price being modified to ₹ 234 and ₹ 230.
However, given the prevailing price action, the Bulls seem to have control and can raise aluminum to ₹ 256 in the short term.
Commercial strategy
Buy Aluminum Futures to ₹ 240 and accumulate in ₹ 238. Place the loss of stop at ₹ 232. When the contract increases to ₹ 248, tighten the stop -los to ₹ 240. In a rally to ₹ 252, increase even more the stop -los a ₹ 248. The book earnings in ₹ 256.
Posted on May 15, 2025
